What are consumption taxes, and what is an example of a consumption tax?
What will be an ideal response?
Consumption taxes are taxes based on the consumption of individuals as opposed to an individual's income. Examples include sales taxes, value-added taxes, and luxury taxes.
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As real GDP per year increases along the short-run aggregate supply (SRAS) curve, the SRAS curve
A) becomes increasingly steep. B) begins to level out. C) shifts inward. D) does not change.
Consumers should purchase quantities of a good to the point where MU > P
a. True b. False Indicate whether the statement is true or false
Economists face an obstacle that many other scientists do not face. What is that obstacle?
a. It is often difficult to formulate theories in economics. b. It is often impractical to perform experiments in economics. c. Economics cannot be addressed objectively; it must be addressed subjectively. d. The scientific method cannot be applied to the study of economics.
The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?
a. (total unemployed + marginally attached workers)/adult population b. (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population c. (total unemployed + marginally attached workers)/(labor force + marginally attached workers) d. (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers)